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Year End in Business Central

Are you ready to close the year in Business Central? Let’s take a look at what that entails, we’ll review some of the post year-end and pre-year end steps that we can perform to ensure that we’re using the system to it’s full potential.

Pre Year-End Close

Prior to year end there are some tasks that we might want to perform beforehand so that we are well prepared. Additionally, it helps if we know that we have everything in place and that any discrepancies have been identified and corrected before we start.

Setup user tasks and reminders

  • This task is an important one in that we can utilize the system to help us to ensure that we have done all of the necessary work we wanted to. We can setup tasks and reminders for ourselves, or we can setup tasks and reminders for other users in the system and assign it to them. With these tasks and reminders we are able to point to specific pages and reports in the system so that we can limit confusion in regards to exactly which reports should be run, or which windows should be accessed.
  • Here are the steps to setup User Tasks and Reminders:

Navigate to the User Tasks page and select +New from the top ribbon.

This opens up the User Task window. Fill in the required fields to setup a new User Task:

  • Give the task a Subject so that the user can easily identify what the task is
  • Give a Task Description to grant more detail about the task
  • You can assign the task to yourself, or another user. So that the task will show up on their homepage.
  • You can assign the User Task to a User Task Group, so that you can group all tasks together.
  • Set a Due Date and Start Date for the User Task
  • Assign a Priority level for the task
  • Link Task To – this allows you to set a Page or Report that is associated with the task. So that when the assigned user opens up the task they can navigate right to the Page or Window, right from the User Task.
  • % Complete, User Completed By, Completed Date - Once the user is finished with the task, either fully or partially. They can update these fields.

Setup new accounting periods

  • Navigate to Accounting Periods and select Process Create Year
  • This opens the Create Fiscal Year Task. Fill in the required fields to create the new Accounting Periods.

 

Review unposted Journal Entries

  • You will want to review any unposted JEs, to ensure that they’re posted in the system if they need to be reflected in any year-end financial reports that you’re analyzing.

Run Reports

  • Trial Balances
  • Statements
  • AR & AP Reports
  • Reports for tax purposes
  • Reports to
  • Run pre-closing reports to verify GL, Customer/Vendor/Bank sub-ledger entries

2 Step Year End Process

Close accounting periods

  • Go to the Accounting Periods page in Business Central
  • Go to Process à Close Year
  • Confirm that the accounting periods are closed after process is finished

Close Income Statement

  • Search for the task Close Income Statement

This brings up the Close Income Statement Task window. Fill in the required fields:

  • Ensure that the correct date is filled in
  • Choose Template
  • Choose Batch
  • Input a Document Number
  • Confirm that the correct Retained Earnings Account is selected
  • The difference between Balance and Detail posting in the “Post to Retained Earnings Acc.” field will be that one entry is posted to the Retained Earning account for all of the GL Accounts closed to it (Balance). Or, there will be multiple entries to the Retained Earnings account, for each GL Account that is closed to it (Detail).
  • Entry can be closed by Dimension. So that the net balance per dimension is closed to the Retained Earning account.
  • When you are sure that all options are selected correctly, you can click OK to run the process.
  • Make sure to navigate to the Journal Batch specified so that you can review and post your entry.

Post Year-End Tasks

After Year-End is completed there is not much left for us to do in the system. But this doesn’t mean we are finished with our work. I suggest we review what was done to ensure we have achieved our desired results. From past experience, this is the best time to write instructions about the process as we have just finished the task and what we did is still fresh in our minds. So take the time to make sure your year-end instructions are updated and current. At the same time this would be a good time to update any year-end tasks in Business Central so next year when you go to complete the process everything is in order.

Do you have a question about Year End in Microsoft Dynamics Business Central? Email our support team or give us a call at 204-982-9890.

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